Download:
pdf |
pdf2010
Instructions for Form 2555
Department of the Treasury
Internal Revenue Service
Foreign Earned Income
Section references are to the Internal
Revenue Code unless otherwise noted.
General Instructions
Do not include on Form 1040, line
61 (federal income tax withheld),
any taxes a foreign employer
withheld from your pay and paid to the
foreign country’s tax authority instead of
to the U.S. Treasury.
!
CAUTION
What’s New
Exclusion amount. For 2010, the
maximum exclusion has increased to
$91,500.
Purpose of Form
If you qualify, you can use Form 2555 to
figure your foreign earned income
exclusion and your housing exclusion or
deduction. You cannot exclude or deduct
more than your foreign earned income for
the year.
You may be able to use Form
2555-EZ, Foreign Earned Income
Exclusion, if you did not have any
self-employment income for the year,
your total foreign earned income did not
exceed $91,500, you do not have any
business or moving expenses, and you
do not claim the housing exclusion or
deduction. For more details, see Form
2555-EZ and its separate instructions.
General Information
If you are a U.S. citizen or a U.S. resident
alien living in a foreign country, you are
subject to the same U.S. income tax laws
that apply to citizens and resident aliens
living in the United States.
Note. Specific rules apply to determine if
you are a resident or nonresident alien of
the United States. See Pub. 519, U.S.
Tax Guide for Aliens, for details.
Foreign country. A foreign country is
any territory under the sovereignty of a
government other than that of the United
States.
The term “foreign country” includes the
country’s territorial waters and airspace,
but not international waters and the
airspace above them. It also includes the
seabed and subsoil of those submarine
areas adjacent to the country’s territorial
waters over which it has exclusive rights
under international law to explore and
exploit the natural resources.
The term “foreign country ” does not
include U.S. possessions or territories. It
does not include the Antarctic region.
Who Qualifies
You qualify for the tax benefits available
to taxpayers who have foreign earned
income if both of the following apply.
• You meet the tax home test (discussed
later on this page).
• You meet either the bona fide
residence test (see page 2) or the
physical presence test (see page 2).
Note. If your only earned income from
work abroad is pay you received from the
U.S. Government as its employee, you do
not qualify for either of the exclusions or
the housing deduction. Do not file Form
2555.
Tax home test. To meet this test, your
tax home must be in a foreign country, or
countries (see Foreign country, earlier),
throughout your period of bona fide
residence or physical presence,
whichever applies. For this purpose, your
period of physical presence is the 330 full
days during which you were present in a
foreign country, not the 12 consecutive
months during which those days
occurred.
Your tax home is your regular or
principal place of business, employment,
or post of duty, regardless of where you
maintain your family residence. If you do
not have a regular or principal place of
business because of the nature of your
trade or business, your tax home is your
regular place of abode (the place where
you regularly live).
You are not considered to have a tax
home in a foreign country for any period
during which your abode is in the United
States. However, if you are temporarily
present in the United States, or you
maintain a dwelling in the United States
(whether or not that dwelling is used by
your spouse and dependents), it does not
necessarily mean that your abode is in
the United States during that time.
Example. You are employed on an
offshore oil rig in the territorial waters of a
foreign country and work a 28-day on/
28-day off schedule. You return to your
family residence in the United States
during your off periods. You are
considered to have an abode in the
United States and do not meet the tax
home test. You cannot claim either of the
exclusions or the housing deduction.
Travel to Cuba
Generally, if you were in Cuba in violation
of U.S. travel restrictions, the following
rules apply.
• Any time spent in Cuba cannot be
counted in determining if you qualify
under the bona fide residence or physical
presence test.
• Any income earned in Cuba is not
considered foreign earned income.
• Any housing expenses in Cuba (or
housing expenses for your spouse or
dependents in another country while you
were in Cuba) are not considered
qualified housing expenses.
Note. If you performed services at the
U.S. Naval Base at Guantanamo Bay,
you were not in violation of U.S. travel
restrictions.
Additional Information
Pub. 54, Tax Guide for U.S. Citizens and
Resident Aliens Abroad, has more
information about the bona fide residence
test, the physical presence test, the
Cat. No. 11901A
foreign earned income exclusion, and the
housing exclusion and deduction. You
can get this publication from most U.S.
Embassies and consulates or by writing
to: National Distribution Center, 1201 N.
Mitsubishi Motorway, Bloomington, IL
61705-6613. You can also download this
publication (as well as other forms and
publications) at IRS.gov.
Waiver of Time Requirements
If your tax home was in a foreign country
and you were a bona fide resident of, or
physically present in, a foreign country
and had to leave because of war, civil
unrest, or similar adverse conditions, the
minimum time requirements specified
under the bona fide residence and
physical presence tests may be waived.
You must be able to show that you
reasonably could have expected to meet
the minimum time requirements if you had
not been required to leave. Each year the
IRS will publish in the Internal Revenue
Bulletin a list of the only countries that
qualify for the waiver for the previous year
and the dates they qualify. If you left one
of the countries during the period
indicated, you can claim the tax benefits
on Form 2555, but only for the number of
days you were a bona fide resident of, or
physically present in, the foreign country.
If you can claim either of the
exclusions or the housing deduction
because of the waiver of time
requirements, attach a statement to your
return explaining that you expected to
meet the applicable time requirement, but
the conditions in the foreign country
prevented you from the normal conduct of
business. Also, enter “Claiming Waiver” in
the top margin on page 1 of Form 2555.
When To File
A 2010 calendar year Form 1040 is
generally due April 18, 2011.
However, you are automatically
granted a 2-month extension of time to
file (to June 15, 2011, for a 2010 calendar
year return) if, on the due date of your
return, you live outside the United States
and Puerto Rico and your tax home
(defined earlier) is outside the United
States and Puerto Rico. If you take this
extension, you must attach a statement to
your return explaining that you meet
these two conditions.
The automatic 2-month extension also
applies to paying the tax. However, you
will owe interest on any tax not paid by
the regular due date of your return. This is
April 18, 2011, for a 2010 calendar year
return.
When to claim the exclusion(s). The
first year you plan to take the foreign
earned income exclusion and/or the
housing exclusion or deduction, you may
not yet have met either the physical
presence test or the bona fide residence
test by the due date of your return
(including the automatic 2-month
extension, discussed earlier). If this
occurs, you can either:
1. Apply for a special extension to a
date after you expect to qualify, or
2. File your return timely without
claiming the exclusion and then file an
amended return after you qualify.
Special extension of time. To apply
for this extension, complete and file Form
2350, Application for Extension of Time
To File U.S. Income Tax Return, with the
Department of the Treasury, Internal
Revenue Service Center, Austin, TX
73301-0215, before the due date of your
return. Interest is charged on the tax not
paid by the regular due date as explained
earlier.
Amended return. File Form 1040X,
Amended U.S. Individual Income Tax
Return, to change a return you already
filed. Generally, Form 1040X must be
filed within 3 years after the date the
original return was filed or within 2 years
after the date the tax was paid, whichever
is later.
Choosing the Exclusion(s)
To choose either of the exclusions,
complete the appropriate parts of Form
2555 and file it with your Form 1040 or
Form 1040X, Amended U.S. Individual
Income Tax Return. Your initial choice to
claim the exclusion must usually be made
on a timely filed return (including
extensions) or on a return amending a
timely filed return. However, there are
exceptions. See Pub. 54 for details.
Once you choose to claim an
exclusion, that choice remains in effect for
that year and all future years unless it is
revoked. To revoke your choice, you must
attach a statement to your return for the
first year you do not wish to claim the
exclusion(s). If you revoke your choice,
you cannot claim the exclusion(s) for your
next 5 tax years without the approval of
the Internal Revenue Service. See Pub.
54 for more information.
Figuring tax on income not excluded.
If you claim either of the exclusions or the
housing deduction, you must figure the
tax on your nonexcluded income using
the tax rates that would have applied had
you not claimed the exclusions. See the
Instructions for Form 1040 and complete
the Foreign Earned Income Tax
Worksheet to figure the amount of tax to
enter on Form 1040, line 44. When
figuring your alternative minimum tax on
Form 6251, you must use the Foreign
Earned Income Tax Worksheet in the
instructions for Form 6251.
Earned income credit. You cannot take
the earned income credit if you claim
either of the exclusions or the housing
deduction.
Foreign tax credit or deduction. You
cannot take a credit or deduction for
foreign income taxes paid or accrued on
income that is excluded under either of
the exclusions. If all of your foreign
earned income is excluded, you cannot
claim a credit or deduction for the foreign
taxes paid or accrued on that income. If
only part of your income is excluded, you
cannot claim a credit or deduction for the
foreign taxes allocable to the excluded
income. See Pub. 514, Foreign Tax
Credit for Individuals, for details on how to
figure the amount allocable to the
excluded income.
IRA deduction. If you claim either of the
exclusions, special rules apply in figuring
the amount of your IRA deduction. For
details, see Pub. 590, Individual
Retirement Arrangements (IRAs).
Specific Instructions
See Pub. 54 for more information and
examples.
Note. A nonresident alien who, with a
U.S. citizen or U.S. resident alien spouse,
chooses to be taxed as a resident of the
United States can qualify under this test if
the time requirements are met. See Pub.
54 for details on how to make this choice.
Part II
Part IV
Bona Fide Residence Test
Foreign Earned Income
To meet this test, you must be one of the
following:
• A U.S. citizen who is a bona fide
resident of a foreign country, or countries,
for an uninterrupted period that includes
an entire tax year (January 1 – December
31, if you file a calendar year return), or
• A U.S. resident alien who is a citizen or
national of a country with which the
United States has an income tax treaty in
effect and who is a bona fide resident of a
foreign country, or countries, for an
uninterrupted period that includes an
entire tax year (January 1 – December 31,
if you file a calendar year return). See
Pub. 901, U.S. Tax Treaties, for a list of
countries with which the United States
has an income tax treaty in effect.
Whether you are a bona fide resident
of a foreign country depends on your
intention about the length and nature of
your stay. Evidence of your intention may
be your words and acts. If these conflict,
your acts carry more weight than your
words. Generally, if you go to a foreign
country for a definite, temporary purpose
and return to the United States after you
accomplish it, you are not a bona fide
resident of the foreign country. If
accomplishing the purpose requires an
extended, indefinite stay, and you make
your home in the foreign country, you
may be a bona fide resident. See Pub. 54
for more information and examples.
Line 10. Enter the dates your bona fide
residence began and ended. If you are
still a bona fide resident, enter
“Continues” in the space for the date
your bona fide residence ended.
Lines 13a and 13b. If you submitted a
statement of nonresidence to the
authorities of a foreign country in which
you earned income and the authorities
hold that you are not subject to their
income tax laws by reason of
nonresidency in the foreign country, you
are not considered a bona fide resident of
that country.
If you submitted such a statement and
the authorities have not made an adverse
determination of your nonresident status,
you are not considered a bona fide
resident of that country.
Part III
Physical Presence Test
To meet this test, you must be a U.S.
citizen or resident alien who is physically
present in a foreign country, or countries,
for at least 330 full days during any period
of 12 months in a row. A full day means
the 24-hour period that starts at midnight.
To figure 330 full days, add all
separate periods you were present in a
foreign country during the 12-month
period shown on line 16. The 330 full
days can be interrupted by periods when
you are traveling over international waters
or are otherwise not in a foreign country.
-2-
Enter in this part the total foreign earned
income you earned and received
(including income constructively received)
during the tax year. If you are a cash
basis taxpayer, include in income on
Form 1040, the foreign earned income
you received during the tax year
regardless of when you earned it. (For
example, include wages on Form 1040,
line 7.)
Income is earned in the tax year you
perform the services for which you
receive the pay. But if you are a cash
basis taxpayer and, because of your
employer’s payroll periods, you received
your last salary payment for 2009 in 2010,
that income may be treated as earned in
2010. If you cannot treat that salary
payment as income earned in 2010, the
rules explained under Income earned in
prior year, discussed later, apply. See
Pub. 54 for more details.
Foreign earned income for this
purpose means wages, salaries,
professional fees, and other
compensation received for personal
services you performed in a foreign
country during the period for which you
meet the tax home test and either the
bona fide residence test or the physical
presence test. It also includes noncash
income (such as a home or car) and
allowances or reimbursements.
Foreign earned income does not
include amounts that are actually a
distribution of corporate earnings or
profits rather than a reasonable allowance
as compensation for your personal
services. It also does not include the
following types of income.
• Pension and annuity income (including
social security benefits and railroad
retirement benefits treated as social
security).
• Interest, ordinary dividends, capital
gains, alimony, etc.
• Portion of 2009 moving expense
deduction allocable to 2010 that is
included in your 2010 gross income. For
details, see Moving Expense Attributable
to Foreign Earnings in 2 Years under
Moving Expenses in Pub. 54.
• Amounts paid to you by the U.S.
Government or any of its agencies if you
were an employee of the U.S.
Government or any of its agencies.
• Amounts received after the end of the
tax year following the tax year in which
you performed the services.
• Amounts you must include in gross
income because of your employer’s
contributions to a nonexempt employees’
trust or to a nonqualified annuity contract.
Income received in prior year. Foreign
earned income received in 2009 for
services you performed in 2010 can be
excluded from your 2009 gross income if,
and to the extent, the income would have
been excludable if you had received it in
2010. To claim the additional exclusion,
Instructions for Form 2555 (2010)
you must amend your 2009 tax return. To
do this, file Form 1040X.
Income earned in prior year. Foreign
earned income received in 2010 for
services you performed in 2009 can be
excluded from your 2010 gross income if,
and to the extent, the income would have
been excludable if you had received it in
2009.
If you are excluding income under this
rule, do not include this income in Part IV.
Instead, attach a statement to Form 2555
showing how you figured the exclusion.
Enter the amount that would have been
excludable in 2009 on Form 2555 to the
left of line 45. Next to the amount enter
“Exclusion of Income Earned in 2009.”
Include it in the total reported on line 45.
Note. If you claimed any deduction,
credit, or exclusion on your 2009 return
that is definitely related to the 2009
foreign earned income you are excluding
under this rule, you may have to amend
your 2009 income tax return to adjust the
amount you claimed. To do this, file Form
1040X.
Line 20. If you engaged in an
unincorporated trade or business in which
both personal services and capital were
material income-producing factors, a
reasonable amount of compensation for
your personal services will be considered
earned income. The amount treated as
earned income, however, cannot be more
than 30% of your share of the net profits
from the trade or business after
subtracting the deduction for one-half of
self-employment tax.
If capital is not an income-producing
factor and personal services produced the
business income, the 30% rule does not
apply. Your entire gross income is earned
income.
Line 25. Enter the value of meals and/or
lodging provided by, or on behalf of, your
Limit on Housing Expenses
Worksheet — Line 29b
employer that is excludable from your
income under section 119. To be
excludable, the meals and lodging must
have been provided for your employer’s
convenience and on your employer’s
business premises. In addition, you must
have been required to accept the lodging
as a condition of your employment. If you
lived in a camp provided by, or on behalf
of, your employer, the camp may be
considered part of your employer’s
business premises. See Exclusion of
Meals and Lodging in Pub. 54 for details.
Part VI
Line 28. Enter the total reasonable
expenses paid or incurred during the tax
year by you, or on your behalf, for your
foreign housing and the housing of your
spouse and dependents if they lived with
you. You can also include the reasonable
expenses of a second foreign household
(defined later). Housing expenses are
considered reasonable to the extent they
are not lavish or extravagant under the
circumstances.
Housing expenses include rent, utilities
(other than telephone charges), real and
personal property insurance,
nonrefundable fees paid to obtain a lease,
rental of furniture and accessories,
residential parking, and household
repairs. You can also include the fair
rental value of housing provided by, or on
behalf of, your employer if you have not
excluded it on line 25.
Do not include deductible interest and
taxes, any amount deductible by a
tenant-stockholder in connection with
cooperative housing, the cost of buying or
improving a house, principal payments on
a mortgage, or depreciation on the house.
Also, do not include the cost of domestic
labor, pay television, or the cost of buying
furniture or accessories.
Keep for Your Records
Note. If the location in which you incurred housing expenses is not listed in the table
beginning on page 5, and the number of days in your qualifying period that fall within the
2010 tax year is 365, DO NOT complete this worksheet. Instead, enter $27,450 on line 29b.
1. Enter the number of days in your qualifying period that fall within the
2010 tax year (see the instructions for line 31) . . . . . . . . . . . . . . .
1.
2. Did you enter 365 on line 1?
No. If the amount on line 1 is less than 365, skip line 2 and go to
line 3.
Yes. Locate the amount under the column Limit on Housing
Expenses (full year) from the table beginning on page 5 for the
location in which you incurred housing expenses. This is your
limit on housing expenses. Enter the amount here and on
line 29b.
STOP
Do not complete the rest of this worksheet . . . . . . . . . . . .
2.
3. Enter the amount under the column Limit on Housing Expenses
(daily) from the table beginning on page 5 for the location in which
you incurred housing expenses. If the location is not listed in the
table, enter $75.21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
4. Multiply line 1 by line 3. This is your limit on housing expenses.
Enter the result here and on line 29b . . . . . . . . . . . . . . . . . . . . .
4.
Instructions for Form 2555 (2010)
-3-
Include expenses for housing only
during periods for which:
• The value of your housing is not
excluded from gross income under
section 119 (unless you maintained a
second foreign household as defined
later), and
• You meet the tax home test and either
the bona fide residence or physical
presence test.
Second foreign household. If you
maintained a separate foreign household
for your spouse and dependents at a
place other than your tax home because
the living conditions at your tax home
were dangerous, unhealthful, or otherwise
adverse, you can include the expenses of
the second household on line 28.
Married couples. The following rules
apply if both you and your spouse qualify
for the tax benefits of Form 2555.
Same foreign household. If you and
your spouse lived in the same foreign
household and file a joint return, you must
figure your housing amounts (line 33)
jointly. If you file separate returns, only
one spouse can claim the housing
exclusion or deduction.
In figuring your housing amount
jointly, either spouse (but not both) can
claim the housing exclusion or housing
deduction. However, if you and your
spouse have different periods of
residence or presence, and the one with
the shorter period of residence or
presence claims the exclusion or
deduction, you can claim as housing
expenses only the expenses for that
shorter period. The spouse claiming the
exclusion or deduction can aggregate the
housing expenses of both spouses,
subject to the limit on housing expenses
(line 29b), and subtract his or her base
housing amount.
Separate foreign households. If you
and your spouse lived in separate foreign
households, you each can claim qualified
expenses for your own household only if:
• Your tax homes were not within a
reasonable commuting distance of each
other, and
• Each spouse’s household was not
within a reasonable commuting distance
of the other spouse’s tax home.
Otherwise, only one spouse can claim
his or her housing exclusion or deduction.
This is true even if you and your spouse
file separate returns.
See Pub. 54 for additional information.
Line 29a. Enter the city or other location
(if applicable) and the country where you
incurred foreign housing expenses during
the tax year only if your location is listed
in the table beginning on page 5;
otherwise, leave this line blank.
Line 29b. Your housing expenses may
not exceed a certain limit. The limit on
housing expenses varies depending upon
the location in which you incur housing
expenses. In 2010, for most locations,
this limit is $27,450 (30 percent of
$91,500) if your qualifying period includes
all of 2010 (or $75.21 per day if the
number of days in your qualifying period
that fall within your 2010 tax year is less
than 365).
The table beginning on page 5 lists the
housing expense limits based on
geographic differences in foreign housing
costs relative to housing costs in the
United States. If the location in which you
incurred housing expenses is listed in the
table, or the number of days in your
qualifying period that fall within the 2010
tax year is less than 365, use the Limit on
Housing Expenses Worksheet on page 3
to figure the amount to enter on line 29b.
If the location in which you incurred
housing expenses is not listed in the
table, and the number of days in your
qualifying period is 365, enter $27,450 on
line 29b.
Example. For 2010, because your
location is not listed in the table beginning
on page 5, your limit on housing
expenses is $75.21 per day ($27,450
divided by 365). If you file a calendar year
return and your qualifying period is
January 1, 2010, to October 1, 2010 (274
days), you would enter $20,608 on line
29b ($75.21 multiplied by 274 days).
More than one foreign location. If
you moved during the 2010 tax year and
incurred housing expenses in more than
one foreign location as a result, complete
the Limit on Housing Expenses
Worksheet on page 3 for each location in
which you incurred housing expenses,
entering the number of qualifying days
during which you lived in the applicable
location on line 1. Add the results shown
on line 4 of each worksheet, and enter the
total on line 29b.
If you moved during the 2010 tax
year and are completing more
CAUTION
than one Limit on Housing
Expenses Worksheet, the total number of
days entered on line 1 of your worksheets
may not exceed the total number of days
in your qualifying period that fall within the
2010 tax year (that is, the number of days
entered on Form 2555, line 31).
Line 31. Enter the number of days in
your qualifying period that fall within your
2010 tax year. Your qualifying period is
the period during which you meet the tax
!
Housing Deduction Carryover
Worksheet — Line 49
home test and either the bona fide
residence or the physical presence test.
Example. You establish a tax home
and bona fide residence in a foreign
country on August 14, 2010. You maintain
the tax home and residence until January
31, 2012. You are a calendar year
taxpayer. The number of days in your
qualifying period that fall within your 2010
tax year is 140 (August 14 through
December 31, 2010).
Nontaxable U.S. Government
allowances. If you or your spouse
received a nontaxable housing allowance
as a military or civilian employee of the
U.S. Government, see Pub. 54 for
information on how that allowance may
affect your housing exclusion or
deduction.
Line 34. Enter any amount your
employer paid or incurred on your behalf
that is foreign earned income included in
your gross income for the tax year
(without regard to section 911).
Examples of employer-provided
amounts are:
• Wages and salaries received from your
employer.
• The fair market value of compensation
provided in kind (such as the fair rental
value of lodging provided by your
employer as long as it is not excluded on
line 25).
• Rent paid by your employer directly to
your landlord.
• Amounts paid by your employer to
reimburse you for housing expenses,
educational expenses of your
dependents, or as part of a tax
equalization plan.
Self-employed individuals. If all of your
foreign earned income (Part IV) is
self-employment income, skip lines 34
Keep for Your Records
1. Enter the amount from your 2009 Form 2555, line 46 . . . . . . . . . .
1.
2. Enter the amount from your 2009 Form 2555, line 48 . . . . . . . . . .
2.
3. Subtract line 2 from line 1. If the result is zero, stop; enter -0- on
line 49 of your 2010 Form 2555. You do not have any housing
deduction carryover from 2009 . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
4. Enter the amount from your 2010 Form 2555, line 47 . . . . . . . . . .
4.
5. Enter the amount from your 2010 Form 2555, line 48 . . . . . . . . . .
5.
6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
7. Enter the smaller of line 3 or line 6 here and on line 49 of your 2010
Form 2555. If line 3 is more than line 6, you cannot carry the
difference over to any future tax year . . . . . . . . . . . . . . . . . . . . . © 7.
-4-
and 35 and enter -0- on line 36. If you
qualify for the housing deduction, be sure
to complete Part IX.
Part VII
Married couples. If both you and your
spouse qualify for, and choose to claim,
the foreign earned income exclusion,
figure the amount of the exclusion
separately for each of you. You each
must complete Part VII of your separate
Forms 2555.
Community income. The amount of the
exclusion is not affected by the
income-splitting provisions of community
property laws. The sum of the amounts
figured separately for each of you is the
total amount excluded on a joint return.
Part VIII
If you claim either of the exclusions, you
cannot claim any deduction (including
moving expenses), credit, or exclusion
that is definitely related to the excluded
income. If only part of your foreign earned
income is excluded, you must prorate
such items based on the ratio that your
excludable earned income bears to your
total foreign earned income. See Pub. 54
for details on how to figure the amount
allocable to the excluded income.
The exclusion under section 119 and
the housing deduction are not considered
definitely related to the excluded income.
Line 44. Report in full on Form 1040 and
related forms and schedules all
deductions allowed in figuring your
adjusted gross income (Form 1040, line
37). Enter on line 44 the total amount of
those deductions (such as the deduction
for moving expenses, the deduction for
one-half of self-employment tax, and the
expenses claimed on Schedule C or C-EZ
(Form 1040)) that are not allowed
because they are allocable to the
excluded income. This applies only to
deductions definitely related to the
excluded earned income. See Pub. 54 for
details on how to report your itemized
deductions (such as unreimbursed
employee business expenses) that are
allocable to the excluded income.
Part IX
If line 33 is more than line 36 and line 27
is more than line 43, complete this part to
figure your housing deduction.
Line 49. Use the housing deduction
carryover worksheet on this page to figure
your carryover from 2009.
One-year carryover. If the amount on
line 46 is more than the amount on line
47, you can carry the difference over to
your 2011 tax year. If you cannot deduct
the excess in 2011 because of the 2011
limit, you cannot carry it over to any future
tax year.
Instructions for Form 2555 (2010)
2010 Limits on Housing Expenses
Country
City or Other Location
Limit on Housing
Expenses (daily)
Limit on Housing
Expenses (full year)
Angola
Luanda
230.14
84,000
Argentina
Buenos Aires
154.79
56,500
Australia
Adelaide
83.29
30,400
Brisbane
82.47
30,100
Gold Coast
82.47
30,100
Melbourne
105.48
38,500
Oakey
82.47
30,100
Perth
112.88
41,200
Sydney
89.81
32,782
Toowoomba
82.47
30,100
Austria
Vienna
96.99
35,400
Bahamas, The
Nassau
136.16
49,700
Bahrain
120.55
44,000
Barbados
103.29
37,700
Antwerp
109.59
40,000
Brussels
144.66
52,800
Gosselies
129.04
47,100
Hoogbuul
109.59
40,000
Mons
129.04
47,100
SHAPE/Chievres
129.04
47,100
246.58
90,000
92.05
33,600
151.51
55,300
Belgium
Bermuda
Bosnia-Herzegovina
Sarajevo
Brazil
Brasilia
Rio de Janeiro
Canada
96.16
35,100
Sao Paulo
127.40
46,500
Calgary
105.75
38,600
Dartmouth
92.60
33,800
Edmonton
96.16
35,100
Halifax
92.60
33,800
London, Ontario
77.81
28,400
Montreal
156.71
57,200
Ottawa
129.32
47,200
Toronto
128.22
46,800
Vancouver
122.74
44,800
Victoria
90.96
33,200
Winnipeg
84.66
30,900
Cayman Islands
Grand Cayman
131.51
48,000
Chile
Santiago
136.99
50,000
China
Beijing
195.07
71,200
Hong Kong
313.15
114,300
Shanghai
156.17
57,001
Bogota
148.22
54,100
All cities other than Bogota and
Barranquilla
135.34
49,400
Denmark
Copenhagen
119.74
43,704
Dominican Republic
Santo Domingo
124.66
45,500
Ecuador
Guayaquil
84.38
30,800
Quito
83.56
30,500
Tallinn
127.67
46,600
Colombia
Estonia
Instructions for Form 2555 (2010)
-5-
2010 Limits on Housing Expenses
Limit on Housing
Expenses (daily)
Limit on Housing
Expenses (full year)
Garches
257.26
93,900
Le Havre
108.22
39,500
Lyon
146.58
53,500
Marseille
136.99
50,000
Montpellier
121.37
44,300
Paris
257.26
93,900
Sevres
257.26
93,900
Suresnes
257.26
93,900
Versailles
257.26
93,900
Babenhausen
126.30
46,100
Bad Aibling
107.67
39,300
Bad Nauheim
100.82
36,800
Baumholder
120.55
44,000
Berlin
154.25
56,300
Birkenfeld
120.55
44,000
Boeblingen
153.15
55,900
Bonn
Country
France
Germany
City or Other Location
115.07
42,000
Butzbach
98.63
36,000
Darmstadt
126.30
46,100
Erlangen
79.73
29,100
Frankfurt am Main
131.78
48,100
Friedberg
100.82
36,800
Fuerth
Garmisch-Partenkirchen
Geilenkirchen
Gelnhausen
Germersheim
Giebelstadt
Giessen
79.73
29,100
115.07
42,000
82.19
30,000
158.90
58,000
95.34
34,800
109.04
39,800
98.63
36,000
Grafenwoehr
124.11
45,300
Hanau
158.90
58,000
Hannover
94.25
34,400
Heidelberg
119.45
43,600
Idar-Oberstein
120.55
44,000
Ingolstadt
177.81
64,900
Kaiserslautern, Landkreis
154.52
56,400
Kitzingen
109.04
39,800
Leimen
119.45
43,600
Ludwigsburg
153.15
55,900
Mainz
170.41
62,200
Mannheim
119.45
43,600
Munich
177.81
64,900
Nellingen
153.15
55,900
Neubruecke
120.55
44,000
Nuernberg
79.73
29,100
Ober Ramstadt
126.30
46,100
Oberammergau
115.07
42,000
Pirmasens
154.52
56,400
Rheinau
119.45
43,600
79.73
29,100
Schwabach
-6-
Instructions for Form 2555 (2010)
2010 Limits on Housing Expenses
Limit on Housing
Expenses (daily)
Limit on Housing
Expenses (full year)
Schwetzingen
119.45
43,600
Seckenheim
119.45
43,600
Sembach
154.52
56,400
Stuttgart
153.15
55,900
Vilseck
124.11
45,300
Wahn
115.07
42,000
Wertheim
109.04
39,800
Wiesbaden
170.41
62,200
Wuerzburg
109.04
39,800
79.73
29,100
Zweibrueken
154.52
56,400
All cities other than Augsburg,
Babenhausen, Bad Aibling, Bad
Kreuznach, Bad Nauheim,
Baumholder, Berchtesgaden,
Berlin, Birkenfeld, Boeblingen,
Bonn, Bremen, Bremerhaven,
Butzbach, Cologne, Darmstadt,
Delmenhorst, Duesseldorf,
Erlangen, Flensburg, Frankfurt
am Main, Friedberg, Fuerth,
Garlstedt,
Garmisch-Partenkirchen,
Geilenkirchen, Gelnhausen,
Germersheim, Giebelstadt,
Giessen, Grafenwoehr, Grefrath,
Greven, Gruenstadt, Hamburg,
Hanau, Handorf, Hannover,
Heidelberg, Heilbronn,
Herongen, Idar-Oberstein,
Ingolstadt, Kaiserslautern,
Landkreis, Kalkar, Karlsruhe,
Kerpen, Kitzingen, Koblenz,
Leimen, Leipzig, Ludwigsburg,
Mainz, Mannheim, Mayen,
Moenchen-Gladbach, Muenster,
Munich, Nellingen, Neubruecke,
Noervenich, Nuernberg, Ober
Ramstadt, Oberammergau,
Osterholz-Scharmbeck,
Pirmasens, Rheinau, Rheinberg,
Schwabach, Schwetzingen,
Seckenheim, Sembach,
Stuttgart, Twisteden, Wahn,
Wertheim, Wiesbaden, Worms,
Wuerzburg, Zirndorf, and
Zweibrueken
122.19
44,600
98.63
36,000
Country
Germany (Continued)
City or Other Location
Zirndorf
Ghana
Accra
Greece
Argyroupolis
98.36
35,900
Athens
120.55
44,000
Elefsis
120.55
44,000
Ellinikon
120.55
44,000
98.36
35,900
Mt. Parnis
120.55
44,000
Mt. Pateras
120.55
44,000
Nea Makri
120.55
44,000
Perivolaki
98.36
35,900
120.55
44,000
78.63
28,700
120.55
44,000
Mt. Hortiatis
Piraeus
Souda Bay (Crete)
Tanagra
Thessaloniki
Guatemala
Guatemala City
Guyana
Georgetown
Holy See, The
Instructions for Form 2555 (2010)
-7-
98.36
35,900
108.49
39,600
95.89
35,000
171.23
62,500
2010 Limits on Housing Expenses
Country
Hungary
India
Limit on Housing
Expenses (daily)
City or Other Location
Budapest
Limit on Housing
Expenses (full year)
89.04
32,500
Papa
121.92
44,500
Mumbai
186.08
67,920
82.88
30,252
New Delhi
Indonesia
Jakarta
103.50
37,776
Ireland
Dublin
149.04
54,400
84.11
30,700
Limerick
Shannon Area
114.52
41,800
Israel
Tel Aviv
139.18
50,800
Italy
Catania
100.27
36,600
Genoa
110.68
40,400
85.48
31,200
La Spezia
110.68
40,400
Leghorn
107.40
39,200
Milan
256.16
93,500
Naples
162.47
59,300
Pisa
107.40
39,200
Pordenone-Aviano
130.14
47,500
Rome
171.23
62,500
Sardinia
87.95
32,100
Sigonella
100.27
36,600
Turin
128.22
46,800
Verona
81.92
29,900
Vicenza
131.23
47,900
All cities other than Avellino,
Brindisi, Catania, Florence,
Gaeta, Genoa, Gioia Tauro, La
Spezia, Leghorn, Milan, Mount
Vergine, Naples, Nettuno, Pisa,
Pordenone-Aviano, Rome,
Sardinia, Sigonella, Turin,
Verona, and Vicenza
103.01
37,600
Jamaica
Kingston
112.88
41,200
Japan
Akashi
98.63
36,000
Akizuki
86.85
31,700
Atsugi
124.66
45,500
Camp Zama
124.66
45,500
Chiba-Ken
124.66
45,500
Fussa
Gioia Tauro
124.66
45,500
Gifu
80.00
29,200
Gotemba
94.25
34,400
Haneda
124.66
45,500
Iwakuni
88.77
32,400
124.66
45,500
80.00
29,200
Machida-Shi
124.66
45,500
Misawa
108.22
39,500
Nagoya
103.52
37,786
Okinawa Prefecture
154.52
56,400
Osaka-Kobe
248.39
90,664
Sagamihara
124.66
45,500
Saitama-Ken
124.66
45,500
Sasebo
103.29
37,700
Kanagawa-Ken
Komaki
-8-
Instructions for Form 2555 (2010)
2010 Limits on Housing Expenses
Limit on Housing
Expenses (daily)
Limit on Housing
Expenses (full year)
Tachikawa
124.66
45,500
Tokyo
295.62
107,900
Tokyo-to
124.66
45,500
Yokohama
162.19
59,200
Yokosuka
150.41
54,900
Yokota
124.66
45,500
Kazakhstan
Almaty
131.51
48,000
Korea
Camp Carroll
77.53
28,300
Camp Colbern
140.82
51,400
Camp Market
140.82
51,400
Camp Mercer
140.82
51,400
K-16
140.82
51,400
Kimpo Airfield
140.82
51,400
Munsan
85.21
31,100
Osan AB
87.95
32,100
Pyongtaek
86.30
31,500
Seoul
140.82
51,400
Suwon
140.82
51,400
Taegu
85.48
31,200
Uijongbu
82.47
30,100
Waegwan
77.53
28,300
All cities other than Ammo Depot
#9, Camp Carroll, Camp
Colbern, Camp Market, Camp
Mercer, Changwon, Chinhae,
Chunchon, K-16, Kimhae, Kimpo
Airfield, Kunsan, Kwangju,
Munsan, Osan AB, Pusan,
Pyongtaek, Seoul, Suwon,
Taegu, Tongduchon, Uijongbu,
and Waegwan
80.27
29,300
Kuwait City
176.44
64,400
All cities other than Kuwait City
158.08
57,700
140.55
51,300
Country
Japan (Continued)
Kuwait
City or Other Location
Luxembourg
Macedonia
Skopje
Malaysia
Kuala Lumpur
All cities other than Kuala Lumpur
Malta
Mexico
96.99
35,400
126.58
46,200
92.33
33,700
131.51
48,000
Hermosillo
76.16
27,800
Mazatlan
84.93
31,000
Merida
103.84
37,900
Mexico City
125.21
45,700
90.96
33,200
Monterrey
All cities other than Ciudad Juarez,
Cuernavaca, Guadalajara,
Hermosillo, Matamoros,
Mazatlan, Merida, Metapa,
Mexico City, Monterrey, Nogales,
Nuevo Laredo, Tapachula,
Tijuana, Tuxtla Gutierrez, and
Veracruz
107.95
39,400
Micronesia
Pohnpei
77.26
28,200
Mozambique
Maputo
98.63
36,000
Namibia
Windhoek
87.95
32,100
Netherlands
Amsterdam
144.93
52,900
98.63
36,000
Aruba
Instructions for Form 2555 (2010)
-9-
2010 Limits on Housing Expenses
Limit on Housing
Expenses (daily)
Limit on Housing
Expenses (full year)
Brunssum
117.26
42,800
Eygelshoven
117.26
42,800
Hague, The
196.44
71,700
Heerlen
117.26
42,800
Hoensbroek
117.26
42,800
Hulsberg
117.26
42,800
Kerkrade
117.26
42,800
Landgraaf
117.26
42,800
Maastricht
117.26
42,800
Papendrecht
123.01
44,900
Rotterdam
123.01
44,900
Schaesburg
117.26
42,800
Schinnen
117.26
42,800
Schiphol
144.93
52,900
Ypenburg
196.44
71,700
All cities other than Amsterdam,
Aruba, Brunssum, Coevorden,
Eygelshoven, The Hague,
Heerlen, Hoensbroek, Hulsberg,
Kerkrade, Landgraaf, Maastricht,
Margraten, Papendrecht,
Rotterdam, Schaesburg,
Schinnen, Schiphol, and
Ypenburg
104.93
38,300
Netherlands Antilles
Curacao
125.48
45,800
New Zealand
Auckland
97.81
35,700
Wellington
92.60
33,800
Country
Netherlands (Continued)
City or Other Location
Nicaragua
Managua
87.12
31,800
Norway
Oslo
145.21
53,000
Stavanger
123.56
45,100
All cities other than Oslo and
Stavanger
103.29
37,700
97.26
35,500
Panama
Panama City
Philippines
Cavite
100.00
36,500
Manila
100.00
36,500
76.44
27,900
80.55
29,400
156.71
57,200
84.11
30,700
Lisbon
156.71
57,200
Doha
99.35
36,264
All cities other than Doha
88.77
32,400
Moscow
295.89
108,000
Saint Petersburg
164.38
60,000
Sakhalin Island
212.33
77,500
Vladivostok
212.33
77,500
Yekaterinburg
129.86
47,400
All cities other than Cavite and
Manila
Poland
Portugal
Alverca
Lajes Field
Qatar
Russia
Rwanda
Kigali
86.30
31,500
Saudi Arabia
Jeddah
84.02
30,667
Riyadh
109.59
40,000
Singapore
171.78
62,700
South Africa
Pretoria
107.67
39,300
Spain
Barcelona
111.23
40,600
-10-
Instructions for Form 2555 (2010)
2010 Limits on Housing Expenses
Limit on Housing
Expenses (daily)
Limit on Housing
Expenses (full year)
Madrid
209.04
76,300
Rota
120.55
44,000
Valencia
120.00
43,800
90.68
33,100
Country
Spain (Continued)
City or Other Location
All cities other than Barcelona,
Madrid, Rota, and Valencia
Surinam
Paramaribo
90.41
33,000
Switzerland
Bern
169.32
61,800
Geneva
232.60
84,900
Zurich
107.45
39,219
All cities other than Bern, Geneva,
and Zurich
90.14
32,900
Taiwan
Taipei
126.54
46,188
Thailand
Bangkok
140.00
51,100
Turkey
Ankara
87.95
32,100
Elmadag
87.95
32,100
Izmir-Cigli
86.58
31,600
Manzarali
87.95
32,100
Yamanlar
86.58
31,600
Ukraine
Kiev
197.26
72,000
United Arab Emirates
Abu Dhabi
136.13
49,687
Dubai
156.64
57,174
Basingstoke
112.60
41,099
Bath
112.33
41,000
Bracknell
170.14
62,100
Bristol
106.03
38,700
Cambridge
117.81
43,000
Caversham
202.19
73,800
Cheltenham
147.67
53,900
Croughton
121.10
44,200
Fairford
121.10
44,200
Farnborough
149.86
54,700
Felixstowe
115.07
42,000
Gibraltar
122.24
44,616
Harrogate
127.12
46,400
High Wycombe
170.14
62,100
Kemble
121.10
44,200
Lakenheath
150.41
54,900
Liverpool
106.30
38,800
London
233.15
85,100
Loudwater
173.97
63,500
Menwith Hill
127.12
46,400
Mildenhall
150.41
54,900
Oxfordshire
121.10
44,200
Plymouth
121.10
44,200
Portsmouth
121.10
44,200
Reading
170.14
62,100
Rochester
125.75
45,900
Southampton
121.10
44,200
Surrey
132.61
48,402
Waterbeach
129.59
47,300
Wiltshire
113.97
41,600
United Kingdom
Instructions for Form 2555 (2010)
-11-
2010 Limits on Housing Expenses
City or Other Location
Limit on Housing
Expenses (daily)
Limit on Housing
Expenses (full year)
All cities other than Basingstoke,
Bath, Belfast, Birmingham,
Bracknell, Bristol, Brough, Bude,
Cambridge, Caversham,
Chelmsford, Cheltenham,
Chicksands, Croughton,
Dunstable, Edinburgh, Edzell,
Fairford, Farnborough,
Felixstowe, Ft. Halstead,
Gibraltar, Glenrothes, Greenham
Common, Harrogate, High
Wycombe, Hythe, Kemble,
Lakenheath, Liverpool, London,
Loudwater, Menwith Hill,
Mildenhall, Nottingham,
Oxfordshire, Plymouth,
Portsmouth, Reading,
Rochester, Southampton,
Surrey, Waterbeach, Welford,
West Byfleet, and Wiltshire
119.45
43,600
Venezuela
Caracas
156.16
57,000
Vietnam
Hanoi
128.22
46,800
Ho Chi Minh City
115.07
42,000
Country
United Kingdom (Continued)
-12-
Instructions for Form 2555 (2010)
| File Type | application/pdf |
| File Title | 2010 Instruction 2555 |
| Subject | Instructions for Form 2555, Foreign Earned Income |
| Author | W:CAR:MP:FP |
| File Modified | 2010-11-10 |
| File Created | 2010-11-08 |